According to a report by Data Reportal, there were 164.9m mobile connections in Pakistan in January 2020, equivalent to 75% of the total population, and an increase of 9.6m (+6.2%) since the same time last year.
This is a country fast-connecting to the digital age and those who send money to Pakistan are not escaping the online surge.
While bank transfers and cash pick-up are the most common ways for Small World customers to send money currently, one lesser known service is mobile wallet. In this article we ask, what is a mobile wallet, how does it work, and why might it be a good option for you? Read on to find out.
Money transfer and mobile wallet
In simple terms, a mobile wallet is a digital version of a physical wallet. It is completely secure and offers a way to store payment details (credit and debit cards as well as cash balances) that can be used to receive payments. These payments include international money transfer and the service is available to people who do not have a bank account, so long as they have access to a smart phone.
There are three types of mobile wallet: closed, semi-open and open.
Closed wallets allow you to use money to buy from a specific merchant only and do not allow money to be transferred to your bank account.
Semi-closed wallets allow use with multiple merchants, but also do not allow cash withdrawal.
Open wallets are not limited in these ways. Money in the wallet can be used for any transaction and can be withdrawn as cash.
How does a mobile wallet work?
Once the person you are sending money to has a mobile wallet set up with a provider such as Easypaisa, the process is simple. You can choose to send money to the mobile wallet in person, through a Small World agent, by providing the recipient’s mobile phone number. Alternatively, you can do an online money transfer with the Small World website or by using the Small World app – you can read more about how to use the app to send money home on a recent post.
Since your money is held by a third-party account for the duration of the transaction, it is safe throughout the process.
As soon as you request the money transfer, a message is sent to the merchant and, once it is approved, the money is transferred instantly, allowing the recipient to access it through their mobile wallet.
Why choose mobile wallet for money transfer?
Mobile wallets are based on encrypted software. Therefore they are a safe way to send money online and a powerful tool in the fight against fraud and money theft.
Beneficiary can be unbanked
Using a mobile wallet allows you to transfer money securely to a recipient who does not have a bank account.
No queue or waiting around
By avoiding agents, you are also avoiding unnecessary queues, as well as face-to-face contact; this is especially useful at the moment, although lockdown restrictions are starting to ease. For the more vulnerable or elderly, lockdown or no lockdown, this method of payment means they do not need to travel unnecessarily to pick up money.
Mobile wallets allow for cash to be transferred digitally, instantly.
Is it worth noting, however, that some mobile wallets place restrictions on the amount of money that can be transferred so if you are looking to transfer large amounts please do check before planning a payment.
Sending money to Pakistan with Easypaisa
Small World have teamed up with Easypaisa — Pakistan’s first mobile banking platform — to provide a mobile wallet service to make money transfer to Pakistan as easy and secure as possible.
Easypaisa, part of Telenor Microfinance Bank, operates as a branchless banking service and is working to enable people in Pakistan to go digital.
Why use Small World and Easypaisa?
Small World is offering a set of incentives for Mobile Wallet transactions via Easypaisa for beneficiaries in Pakistan:
- Free unlimited cash outs from International remittance wallet
- Extra cash of PKR 500 to new International remittance wallet customers (every new customer shall receive a maximum amount of PKR 500 on a monthly remittance of PKR 50,000 for the particular month in which they received their first ever transaction in)*
- Free air time worth PKR 2 for every $1 remittance (for a ticket size of $100, the customer will get airtime of PKR 200, minimum ticket size to get air time is $25)*
- Free ATM card on a monthly remittance of $200 (cost of ATM card is PKR 500)
*Extra cash and airtime to be posted within 48hours of the transaction.
Other ways to send money to Pakistan:
- Cash Pick-Up
- Bank Deposit
- Mobile Top-up
Our main partners in Pakistan are: MCB Bank, Wall Street, UBL, National Bank of Pakistan, Bank Alfalah, Allied Bank, Soneri Bank, JS Bank, and Bank AL Habib.